Linked by Thom Holwerda on Thu 19th Jul 2012 18:32 UTC
PDAs, Cellphones, Wireless Nokia just posted its quarterly results - including shipped devices - and it's not looking good. Massive losses, sales dropping, and no growth in Lumia sales in the US. The company is losing money hand-over-fist, and with Windows Phone 8 still months away, the company warns the next quarter will be just as bad.
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Disastrous but above expectations
by vaette on Thu 19th Jul 2012 18:52 UTC
vaette
Member since:
2008-08-09

It was well known that this quarterly report would be terrible, and in fact it came in above expectations. A lot of the losses are related to restructuring (cutting various divisions). Nokia still needs things to work out smoothly with WP8, but this is not as bad as the straight numbers make it look. At the time of writing Nokia is up 6.36% on NYSE. Still a ridiculously low valuation, but it should illustrate that the Q2 report wasn't bad compared to the overall feel of the situation.

Edited 2012-07-19 19:03 UTC

Reply Score: 4

cdude Member since:
2008-09-21

Only the cash reserve is above expectations. That are indeed very good news (I think Microsoft's money was a help there) cause it means they will have the time left to try WP8. Before a lot, including me, where assuming the cash problem would kill them off even before. That are good news but surviving a bit longer is not exactly the greatest news you could have come up with. Making profit and grow again (or at least shrink not any longer) would be. But there they are not above expectations. 6%,market share, tendency to continue downfall. Q3 to come and expectations where not upgraded (yet?). Q4 will be maybe a bit better depending if Microsoft can deliver in time and Nokia makes fast a good product. Earliest 2013Q1 but I doubt that they will be able to make profit again by that time. At least they have more time now to try.

Edited 2012-07-20 08:07 UTC

Reply Parent Score: 2

cdude Member since:
2008-09-21

At the time of writing Nokia is up 6.36%


Yesterday it was more then 14% more. Within one day they lost more then 8% again. Tendency future down. The market reacted positive cause Nokia's cash reserve was far above expectations and for a company in that situation (junk-state rating) the cash reserve is everything.

Nokia's market cap is down to 6.3 billion $. Google payed more for Moto while Nokia has still one of the best patent portfolios worth billions, navteq, networks, brand and those 4 billions in cash. The market clearly believes Nokia is losing a lot more before it can stop the downfall either with selling products (unlikely taken the long timespan and competition into account) or itself (eitger as a whole, unlikely to happen, or in parts, brings more cash in). When Elop is fired today you would see the same day a huge jump up at the end of the curve displayed at:
http://www.marketwatch.com/investing/stock/nok

Edited 2012-07-20 18:01 UTC

Reply Parent Score: 2

Nth_Man Member since:
2010-05-16

In Nasdaq ( http://finance.yahoo.com/q/bc?s=NOK&t=2y&l=on&z=l&q=l&c= ) yesterday Nokia was 1.85 and now is 1.70

Reply Parent Score: 2